Multinational companies like Nestlé compete with other multinationals
in the global environment for scarce and valuable resources, such as
customers and raw materials. In this chapter we first describe the nature of the multinational
company and the way it affects, and is affected by, the countries in which it operates.
Second, we discuss the forces in the specific global environment that affect the way
these companies operate. Third, we describe the forces in the general global environment
that affect the activities of multinationals as they compete around the globe. Lastly,
we examine the challenges that confront all businesses today in a changing global environment.
By the end of the chapter you will appreciate why conditions in the global
environment are a major determinant of a multinational company’s profitability.
